Tips to Have in Mind While Buying an Under-Construction Apartment
Are you planning to buy an under-construction unit? Worried about treading into uncharted waters? Drop the fret and have 6 tips in mind before you put all your hard earned money into this.
Under-construction properties are attractive choices for end users and investors because:
· Under-construction properties are attractive choices for end users and investors because:
· They are relatively cheaper than ready to move in apartments.
· Buyers also have the liberty to choose the floor level, flooring of the unit and also the direction it faces.
· Risks for buyers have cut down considerably post implementation of the RERA (Real Estate Regulation and Development Act).
· Easy for prospective buyers to choose from accountable developers with credibility under their brand.
· Information about the project is available to the buyers that include current status of the project, permits acquired/pending by the builder, and so on.
· Under RERA, the builders/developers are liable to penalties against delays in completion and poor quality construction.
Even with all these advantages, there are few risks for potential buyers and following are the tips to have in mind while buying a property that is under construction:
Find out if the builder is registered under the real estate regulator of the state:
This is easily the first thing that you should identify before getting into further process of buying. With the implementation of RERA, developers have to register their brand and the projects under the regulatory authority of the state. For registering under the state’s regulatory authority, the developers have to disclose all the details of the project including land title, approvals, project layout, construction timeline, delivery date, pending litigations and also the financial status.
As an end user or an investor, you can check the RERA website of your state to validate the developer and the project they are developing. The authority does all the work for you and you do not have to worry about being scammed by fraudulent realtors and developers. Builders with new flats for sale in Chrompet are registered under the state’s regulatory authority.
Validate the builder with their previous ventures:
Research the previous ventures of the builders and the track records. See if they have delivered good customer satisfaction and confirm if they had delivered quality results on time. If the builders have an excellent track record with satisfied customers, then it is a good sign. A well reputed and experienced builder is usually equipped to handle projects that are even affected with the risks of market variables. In Chennai, apartments in Pallavaram Radial Road are constructed by one of the popular builders in the city and the progress is on time in spite of complications.
Identify the number of units that they have sold till date:
It is a market trick to provide an inflated answer to this question; nevertheless it is advisable for you to do the same. Enquire about the number of enquiries they receive in a month, and the actual conversion rate would be 2% of the quoted value that they provide. Dull sales in a project must be looked into and it is advisable not to rush in.
Enquire about the retention of commercial rights:
Some builders retain the commercial rights in the project like the ownership of clubhouse and provide only shared membership. See if this shared membership is proper and mentioned in the legal deed before you go on to sign the deal.
Ask if they have plans to mount mobile towers or hoardings in the building:
By retaining the rights to the terrace floor area, some developers often let out that space for rents to install mobile towers and hoardings. If you are planning to buy one of the units on the top floors, such installations can bring down the value of the property considerably.